{"id":788847,"date":"2026-05-11T13:50:20","date_gmt":"2026-05-11T13:50:20","guid":{"rendered":"https:\/\/www.europesays.com\/us\/788847\/"},"modified":"2026-05-11T13:50:20","modified_gmt":"2026-05-11T13:50:20","slug":"federal-budget-2026-chalmers-to-unveil-property-tax-changes-ndis-cuts-and-business-incentives","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/788847\/","title":{"rendered":"Federal Budget 2026: Chalmers to unveil property tax changes, NDIS cuts and business incentives"},"content":{"rendered":"

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Treasurer Jim Chalmers will unveil the largest change to property taxes this century, deep cuts to the NDIS and measures aimed at cutting business costs in Tuesday\u2019s budget that will break election promises while mapping out plans to deliver affordable housing to young Australians.<\/p>\n

In recognition of the inflation pressures facing the country that have forced the Reserve Bank to lift interest rates at its last three meetings, Chalmers will also pledge a $45 billion improvement to the nation\u2019s finances with every dollar of extra tax revenue saved.<\/p>\n

\"FinanceFinance Minister Katy Gallagher, Prime Minister Anthony Albanese and Treasurer Jim Chalmers at Parliament House on Monday, preparing for Tuesday\u2019s budget.Alex Ellinghausen<\/p>\n

The budget is shaping as the most consequential since Joe Hockey\u2019s infamous 2014 fiscal blueprint, as Chalmers vows to deal with \u201cintergenerational equity\u201d across most areas of government policy.<\/p>\n

The centrepiece will be tax reform and extra spending on housing, with negative gearing to be restricted, the capital gains tax concession wound back to its original form and minimum tax rates imposed on family trusts. It will also contain a tax cut for wage earners, most likely to be paid as a tax offset for the 2027-28 financial year.<\/p>\n

Before last year\u2019s election, Prime Minister Anthony Albanese repeatedly said the government would not change negative gearing, which critics claim has combined with the CGT concession to put upward pressure on Australian property prices that are among the highest in the world.<\/p>\n

Related Article\"Betting<\/a><\/p>\n

On Monday, Albanese effectively confirmed property tax settings would change, saying the government could not sit on its hands while more young people found themselves priced out of owning a home.<\/p>\n

He said the government had to act, given people were increasingly frustrated by an uneven housing market.<\/p>\n

\u201cFor a long period of time, young people have tried to save for a home. Another year has passed since the election and not enough has changed,\u201d he told ABC Radio.<\/p>\n

\u201cSo many people have had another year of missing out at auctions, of renting and paying someone else\u2019s mortgage. And too many young people are close to giving up on the opportunity of owning their own home.\u201d<\/p>\n

Albanese told a caucus gathering on Monday that \u201ca responsible government needs to be prepared to make tough decisions\u201d.<\/p>\n

Any change to property taxes will be contested by the Coalition, still reeling from the terrible result in the Farrer byelection<\/a> where the combined Liberal-Nationals vote was just 21 per cent<\/a>.<\/p>\n<\/p>\n

Shadow treasurer Tim Wilson accused the government of \u201cdeceit and betrayal\u201d with the expected changes, saying it would hurt the people it said it was trying to help.<\/p>\n

\u201cIt\u2019s extremely clear that this government\u2019s intention is to hit every single Australian, to tap into their wealth because they cannot control their spending addiction,\u201d he said.<\/p>\n

\u201cThis government\u2019s budget process is in complete disarray because they have broken their word and Australians have woken up to the dishonesty at the heart of this government and its budget.\u201d<\/p>\n

In a further sign of how critical housing is to the budget, it will contain almost $60 million over the next four years to provide housing for young people on Youth Allowance or Austudy.<\/p>\n

The money will go to community housing providers with the aim of housing 2325 people this financial year, climbing to 4355 people by 2029-30.<\/p>\n

\"ShadowShadow treasurer Tim Wilson says the budget will be built on deceit.Alex Ellinghausen<\/p>\n

The Coalition has warned that the changes to CGT and negative gearing will hurt property investors. But research by analysts from UBS released on Monday argued the reforms are likely to make the purchases of shares more attractive and take pressure off property prices.<\/p>\n

Strategists Richard Schellbach and Lily Huang said the changes to negative gearing would \u201clevel the playing field\u201d against other types of investments, noting current tax settings had put upward pressure on property prices.<\/p>\n

\u201cThe multi-decade boom in Australian house prices has been aided by favourable tax treatment, in particular negative gearing, extended towards investment properties,\u201d they said.<\/p>\n

Chalmers, who delivered budget surpluses in 2022 and 2023, will reveal a string of deficits over the next four years.<\/p>\n

But through extra revenue, in part bolstered by the war against Iran, and $64 billion in spending cuts and reprioritisation of existing expenditure, Chalmers will announce a $44.9 billion improvement to the nation\u2019s finances between 2025-26 and 2029-30.<\/p>\n

Related Article\"Prime<\/a><\/p>\n

Over that period, the government had forecast combined deficits of more than $180 billion.<\/p>\n

Chalmers, expected to confirm gross debt will surpass $1 trillion<\/a> later this year, said a combination of factors was delivering the better budget bottom line.<\/p>\n

\u201cWe\u2019ve delivered a big improvement in the budget bottom line since we were elected and another improvement since the last update in December,\u201d he said.<\/p>\n

\u201cWhat\u2019s driving this improvement in the budget are the savings we\u2019ve found and the spending restraint we\u2019ve shown.\u201d<\/p>\n

A key swing factor remains the outcome of the war against Iran. Brent crude oil prices jumped by almost 5 per cent to $US105 a barrel on Monday as hopes of a resolution to the war fell.<\/p>\n

The budget will reveal inflation is likely to reach 5 per cent by the middle of this year, in part due to the surge in petrol prices, while economic growth \u2013 forecast at 2.25 per cent in the mid-year update \u2013 is expected to be downgraded.<\/p>\n

If oil prices remain elevated through the rest of the year, however, the economic fallout is expected to be worse, including higher inflation for longer and slower jobs growth.<\/p>\n

The single largest cut will be to the NDIS with $35 billion sliced out over the next four years, while $3 billion will be saved by removing the discount on Private Health Insurance rebate for people over 65.<\/p>\n

Some of the savings will be needed for extra spending, including $25 billion for state hospitals and $6 billion on new Pharmaceutical Benefits Scheme listings.<\/p>\n

Chalmers will unveil a productivity package, aimed at increasing the speed at which the economy can grow without adding to inflation pressures. It will contain a suite of measures including a permanent $20,000 instant asset write-off for small businesses, the axing of fees imposed on construction and safety firms and the fast-tracking of building approvals.<\/p>\n

More budget coverage<\/p>\n

Cut through the noise of federal politics with news, views and expert analysis. <\/b>Subscribers can sign up to our weekly Inside Politics newsletter<\/a>.<\/b><\/p>\n

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\"ShaneShane Wright<\/a> is a senior economics correspondent for The Sydney Morning Herald and The Age.Connect via X<\/a> or email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Save You have reached your maximum number of saved items. Remove items from your saved list to add…\n","protected":false},"author":3,"featured_media":788848,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4740,50],"class_list":{"0":"post-788847","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-australia","9":"tag-news"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116556269671562272","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/788847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=788847"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/788847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/788848"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=788847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=788847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=788847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}